Dabur India Limited · NSE:DABUR
Dabur India — Morgan Stanley's 18th Annual India Summit 2016
33 slides from Dabur India's conference presentation, June 2016
Slide 1: Dabur India Ltd Investor Presentation
Dabur India Ltd Investor Presentation June 2016
Slide 2: Dabur Overview
Dabur Overview One of the oldest and largest FMCG Companies in the country World’s largest in Ayurveda and natural healthcare Total reach of 5.3mn outlets, one of the highest among FMCG companies 20 world class manufacturing facilities catering to needs of diverse markets Strong overseas presence wi
Slide 3: Ayurveda: Dabur's Core Philosophy
Ayurveda: Dabur’s Core Philosophy Supporting cultivation World’s best Ayurvedic Comprehen Stringent of rare Ayurvedic doctors sive product Quality Test herbs for R&D support range Ayurvedic facility medicines LIVEVEDA PORTAL Ayurveda- A Click Away !!!! 2 3
Slide 4: Global Business Footprint
Global Business Footprint Sri Banglad UAE Egypt Nigeria Turkey Nepal Lanka esh 3
Slide 5: Robust Growth Trajectory
Robust Growth Trajectory.. in INR bn 84.4 78.1 70.7 61.5 52.8 40.8 33.9 23.6 28.1 20.4 FY07^ FY08 FY09 FY10 FY11^^ FY12 FY13 FY14 FY15 FY 16 12.5 in INR bn 10.7 9.1 7.6 6.5 5.7 5.0 3.3 3.9 2.8 FY07^ FY08 FY09 FY10 FY11^^ FY12 FY13 FY14 FY15 FY 16 4
Slide 6: Superior Shareholder Returns
Superior Shareholder Returns 525 INR Bn 467 440 313 239 167 185 138 82 95 85 FY07^ FY08 FY09 FY10 FY11^^ FY12 FY13 FY14 FY15 FY 16 Current 225% 200% 200% 175% 175% 175% 150% 150% 130% 115% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 5 ^ ^^Bonus issue in FY07 & FY11
Slide 7: Strong Financial Profile
Strong Financial Profile 41.6 52.5% 33.5 43.6% 45.2% 38.3% 26.6 34.0% 21 17.2 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 7.1 21.9% 6.1 17.9% 17.8% 18.2% 18.9% 5.2 4.4 3.7 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 6 *includes Non- Operating income
Slide 8: Distribution Framework
Distribution Framework We reach to 5.3mn Factory Factory outlets !!! C&F C&F GT Stockist MT Stockist Insti Stockist Super Sockist Wholesaler Sub Sockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer 7
Slide 9: Distribution Expansion
Distribution Expansion • Rolled out in FY13 to expand direct coverage in rural markets • Direct Village coverage has increased from 14000 villages in FY11 to 44,000 villages in FY15 • Focus on increasing efficiency and productivity of the channel • Aimed at leveraging the potential of Top 130 towns
Slide 10: Business Structure
Business Structure Domestic FMCG (65%) Domestic (68%) Others (4%) Dabur India Organic Ltd. International (22%) International Namaste Labs (32%) (6%) Hobi Group (3%) * Others include Retail, Commodity exports etc Note: % figure in brackets indicate % share in Consolidated Sales for FY16 9
Slide 11: Sales By Business Vertical
Sales By Business Vertical Healthcare (33%) Domestic HPC(49%) FMCG* Foods(18%) Americas 17% International Business Middle East Europe 33% Region Wise Breakdown 11% Asia 17% Africa * Breakdown of Domestic FMCG business basis FY16 Sales 22% 10
Slide 12: India Business
INDIA BUSINESS 11
Slide 13: Business Strategy
Business Strategy Home & Healthcare Foods Personal Care Leveraging the Increasing Premiumization & Fruit equity Doctor Advocacy Differentiation associated with the ‘Real’ brand Thrust on Strong innovation Focus on Healthy building the OTC pipeline range of products portfolio 12
Slide 14: Focus on Health and Well-Being
Focus on Health and Well-Being Doctor Advocacy The theme of Health platform being built- and Well-Being cuts Both Ayurvedic and across the product Allopathic doctor reach portfolio to be ramped up 13
Slide 15: Building Consumer Connect
Building Consumer Connect 14
Slide 16: Continue to build bigger brands
Continue to build bigger brands 15 16 brands with turnover of INR 1bn+ with 3 brands over 10bn
Slide 17: Competitive Position
Competitive Position #Relative Competitive Position #1 #1 #2 #2 #2 #1 #1 #2 #3 #1 #1 Honey Chyawanprash Baby Massage Glucose Hair Oils Air Freshners Skin Care- Toilet Oral Care Mosquito Juices Oil Bleaches Cleaners Repellant Creams Home and Personal Care Foods Healthcare 16 * Position basis Nielsen
Slide 18: Premiumization is the key
Premiumization is the key …A few Examples 17
Slide 19: International Business
INTERNATIONAL BUSINESS 18
Slide 20: Business Overview
Business Overview Dabur 27121 In INR Mn International(FY16) 23108 24226 18338 16161 Organic Inorganic Business(70%) Business(30%) FY12 FY13 FY14 FY15 FY16 Europe • Saudi Arabia, UAE 12% Middle East • Egypt, Nigeria, Kenya, South Middle East Africa Africa America 32% • Turkey, UK 16% Europe • Nepal,
Slide 21: The Journey
The Journey… 2015-2018 2011-2014 2007-10 •Enter into African •Hobi and Namaste Markets acquired which led to •Expand portfolio 2003-2006 •Entry into Personal geographic expansion •Cross pollinate Care segments •Innovative product ideas and leanings •Manufacturing offerings from different units locat
Slide 22: IBD: Evolution of Amla brand
IBD: Evolution of Amla brand Oldest brand in IBD’s portfolio Hamam Zaith Leaveon Oils Shampoos & Conditioners Snake Oil Hair creams Hair Oils Variants Hair Oils 2003 21
Slide 23: IBD: Evolution of Vatika brand
IBD: Evolution of Vatika brand Largest brand in IBD’s portfolio Hair Serum Hair Colors Hair Gels Hamam Zaith Conditioners Shampoo Hair Cream VHO 2003 22
Slide 24: IBD: Evolution of Dermoviva brand
IBD: Evolution of Dermoviva brand Launched in 2011 Toners Face scrub Face wash Wipes Skin Lotions Creams Hand Wash Skin Serum Soaps 23
Slide 25: IBD: Evolution of Oral Care
IBD: Evolution of Oral Care Launched in 2006 Anti- ageing Mouth wash RTP Herbal Toothpaste Miswak Herbal Gel Herbal ToothPaste 2006 24
Slide 26: Organic International Business
Organic International Business Styling & Oral Care Others Hamamzaith 2% 5% 12% Skin Care 7% Hair Cream 13% Shampoo 14% Hair Oil Oral 39% Hair Oil Care 93% Others 4% 11% The Organic International Business has evolved from being just a Hair Oil business to a diversified personal care entity 25
Slide 27: Inorganic Business
Inorganic Business Key Geographies USA & Africa Key Geography Turkey Hair Straightening Styling Shampoo Styling Liquid Skin & Shampoo & Conditioner Soap Body Care 26
Slide 28: Consolidated Financial Highlights FY16
Consolidated Financial Highlights FY16 Growth % Rs Crs 8.1% SALES 8436 17.9% EBITDA 1739 17.5% PAT 1253 27
Slide 29: Sustainability: A Key Focus
Sustainability: A Key Focus 2918 acres under 2,028 beneficiary 18,00,000 schoolkids benefited cultivation for rare families of our Self – from health & oral medicinal herbs in India Help Group initiatives hygiene programmes 13 States covered under 1,674 586 women trained farmers/beneficiaries of our
Slide 30: Shareholding Pattern and Share Price Trend
Shareholding Pattern and Share Price Trend Public 32% 32% of Dabur’s shares are held by the Public Promoters 68% 29
Slide 31: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L in Rs. million Q4FY16 Q4FY15 YoY (%) FY16 FY15 YoY (%) Net Sales 21,573 19,448 10.9% 84,360 78,064 8.1% Other Operating Income 40 49 181 208 Material Cost 9,763 9,059 7.8% 37,970 37,201 2.1% % of Sales 45.3% 46.6% 45.0% 47.7% Employee Costs 2,020 1,723 17.2% 7
Slide 32: Statement of Assets and Liabilities
Statement of Assets and Liabilities Particulars As at 31/03/2016 As at 31/03/2015 (Audited) (Audited) In INR Mn  EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1759.1 1756.5 (b) Reserves and surplus 39841.6 31784.9 Sub-total - Shareholders' funds 41,600.7 33,541.4 2. Minority intere
Slide 33: Thank You
Thank You
Dabur India — Morgan Stanley's 18th Annual India Summit 2016 on 6ix